Employee Turnover Costs Examined

Research

The Chartered Institute of Personnel and Development (CIPD) has conducted a study on the rates of turnover in various industries and regions in the UK. It is important for companies to track their employee turnover and measure employee retention. The cost, based on Sasha Corp’s research in the US, associated with employee turnover can range from $3,500-$25,000 for an $8/hour employee. According to CIPD a multitude of factors contribute to turnover and most decisions for early departure are made in the first few weeks of employment.

LS3P's offices feature open, employee-centered configurations that provide all employees with access to daylight and views.

A related survey of workplace quality by the Commission for Architecture and the Built Environment determined that 94% of office employees think their places of work show whether they are valued by their employer, but only 39% believed their offices had been designed with people in mind.

Implications

There are countless factors outside of architecture and design that determine whether a given employee will or will not stay with a company, but from siting to interior details, it’s becoming clear that the physical environment is a critical component of this decision.

Companies with offices in multiple locations or who are looking to expand can potentially use employee demographic data to determine where to locate their offices.  The proximity of workplace to home is an increasingly important factor as employees look to reduce their carbon footprint and find alternative means of transportation.  Interior details can help to promote personal control and a more comfortable and productive work environment for all employees while helping them to feel valued and appreciated.

Looking for inspiration? There is an amazing collection of office interior images on the Office Design Gallery website.

Citations

Sasha Corporation.  “Compilation of  Turnover Cost Studies”. January 2007 (updated)

Commission for Architecture and the Built Environment.  “The Value Handbook: Getting the Most From Your Buildings and Spaces”. 2006.  via RDC.

Taylor, Stephen.  “Employee Turnover and Retention”. CIPD, July 2009.